Needham & Company Upgrades Seagate Technology (STX) to Strong Buy

Needham & Company upgraded Seagate Technology (NASDAQ: STX) from Buy to Strong Buy with a price target of $65.00.

Analyst Richard Kugele commented, "Thus far in 2015 the HDD sector has suffered profit-taking, macro concerns on IT spending and PCs, and even seasonal market-timing. While the noise level has been high, our checks suggest the market anxiety seen in the stocks is noticeably absent among the actual companies. Clearly, the lower PC demand (cited early by STX and WDC) has weighed on the quarter modestly more than anticipated, as has currency (impacted consumer demand). But stronger cloud/enterprise has offset this weakness, driving in-line to better EPS. Following a 19% drop YTD (vs a roughly flat S&P 500), we upgrade STX to Strong Buy from Buy, highlighting its 4% dividend yield, and reiterating our $65 PT based on 14x C15E EPS of $4.63."

For an analyst ratings summary and ratings history on Seagate Technology click here. For more ratings news on Seagate Technology click here.

Shares of Seagate Technology closed at $53.76 yesterday.

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